Certificate of origin

This query is : Resolved

Shokin Tiwari (Querist)
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28 February 2015 we are made an export sale of plant and machinery item. Are here requirment of cerficate of origin and if it yes then what is procedure for it.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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12 March 2015 Certificate of Origin

Certificate of Origin is an instrument which establishes evidence on origin of goods imported into any country.These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.

There are two categories of Certificate of Origin – (1) Preferential and (2) Non-Preferential

Preferential arrangement/scheme under which India is receiving tariff preferences for its exports are:

· Generalised System of Preferences (GSP)

· Global System of Trade Preferences (GSTP)

· SAARC Preferential Trading Agreement (SAPTA)

· Asia-Pacific Trade Agreement (APTA)

· India-SriLanka Free Trade Agreement (ISLFTA)

· Indo-Thailand Free Trade Agreement

· India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA)

· India-Korea Comprehensive Economic Partnership Agreement (CEPA)

· India-Japan Comprehensive Economic Partnership Agreement (IJCEPA)

· Asean-India Free Trade Agreement

These Preferential arrangements/agreements prescribe Rules of Origin which have to be met for exports to be eligible for tariff preference.

Authorisedagencies on charging a fee asprescribed by them provides services relating to issue of Certificate of Origin, including details regarding rules of origin, list of items covered by an agreement, extent of tariff preference, verification and certification n of eligibility.

ExportInspection Council (EIC) is agency authorized to print blank certificates.

Generalised System of Preferences (GSP)

It is a non-contractual instrument by which industrialized (developed) countries unilaterally and based on non-reciprocity extend tariff concessions to developing countries. Presently following countries extend tariffpreferences under their GSP Scheme:

Normally Customs of GSP offering countries require information in Form ‘A' (prescribed for GSP Rules of Origin) duly filled by exporters of beneficiary countries and certified by the authorized agencies.

List of agencies authorized to issue GSP Certificate of Origin is given at Appendix 4A to the Hand Book of Procedures vol.I

lobal System of Trade Preference (GSTP)

UnderGSTP, tariff concessions are exchanged among developing countries who have signed agreement.Presently 46 countries are members of GSTP and India has exchanged tariff concessions with 12countries on a limited number of products.Export Inspection Council (EIC)is sole agency authorized to issue Certificate of Origin under GSTP.

SAARC Preferential Trading Agreement (SAPTA)

SAARC members namelyIndia, Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka and Maldives offering tariff concessions among SAARC countries. List of agencies authorized to issue Certificate of Origin is given at Appendix 4B to the Hand Book of Procedures vol.I(FIEO is one of the agencies authorized to issue Certificate)

Asia-Pacific Trade Agreement (APTA)

APTA offers liberalization of tariff and non-tariff barriers in order to expand trade in goods in Economic and Social Commission for Asia and Pacific (ESCAP) region.Presently Bangladesh, Sri Lanka, South Korea, India and China are exchanging tariff concessions under APTA.List of Agencies authorized to issue Certificate of Origin under APTA is given in Appendix 4B to the Hand Book of Procedures vol.I (FIEO is one of the agencies authorized to issue Certificate)

India-Sri Lanka Free Trade Agreement (ISLFTA)

This Free Trade Agreement is between India and Sri Lanka which offers tariff concession by the Governments of both countries.Export Inspection Council is sole agency to issue Certificate of Origin under this agreement.

India Afghanistan Preferential Trade Agreement

This preferential trade agreement is betweenGovernments of India and Afghanistan.ExportInspection Council is the sole agency to issue Certificate of Origin under this Agreement.

India – Thailand Frame work Agreement for Free Trade Area

India and Thailand have signed protocol to implement Early Harvest Scheme under India-Thailand Free Trade Agreement offering tariff preferences for imports on items of Early Harvest Scheme only to those products which satisfy Rules of Origin criteria notified by the Department of Revenue, Ministry of Finance vide notification no 101/2004-Customs dated 31.08.2004.Export Inspection Council is the sole agency to issue Certificate of Origin under this protocol.

India- Malaysia Comprehensive Economic Cooperation Agreement (IMCECA)

This Comprehensive Economic Cooperation agreement is between Government of India and Malaysia. Export Inspection Council is the sole agency to issue Certificate of Origin under this Agreement, with effect from 1st July 2011.

India-Korea Comprehensive Economic Partnership Agreement (CEPA)

The Government of India and the Republic of Korea have signed the Comprehensive Economic Partnership Agreement (CEPA) to liberalize and facilitate trade in goods and services and expand investment between the Countries. Export Inspection Council is the sole agency to issue Certificate of Origin under this Agreement.

India-Japan Comprehensive Economic Partnership Agreement (IJCEPA)

The Government of India and the Government of Japan have signed the Comprehensive Economic Partnership Agreement (CEPA) to increase investment opportunities and strengthen protection for investments and investment activities between the Countries. Export Inspection Council is the sole agency to issue Certificate of Origin under this Agreement.

Certificate of Origin (non-preferential for exports to Mexico under NAFTA - North American Free Trade Agreement)

Following the implementation of NAFTA, the Government of Mexico introduced the obligatory certificate of origin rule in terms of which, the Certificate of Origin of Indian products to be exported to Mexico must be attested by designated officials of the authorised EPCs/Trade bodies/Chambers of Commerce or the authorities so empowered (FIEO is one of the authorised agency to sign the Certificate of Origin).

Non Preferential

Government have also nominated certain agencies to issue Non Preferential Certificate of Origin in accordance with Article II of International Convention Relating to simplification of Customs formalities,1923.These Certificate of Origins evidence origin of goods and do not bestow anyright to preferential tariffs.

List ofagencies authorized to issue Non Preferential Certificate of Origin is given in Appendix 4C to the Hand Book Procedures vol.I. (FIEO is one of the agencies authorized to issue Certificate)

Exporters desiring Non preferential Certificate of Origin may apply any agency enlisted in Appendix 4C to Hand Book of Procedures vol.I with following documents:

Details of quantum/origin of inputs/consumables used in export product.

Two copies of Invoices

Packing List in duplicate for concerned invoice

Fee not exceeding Rs.100 per certificate as may be prescribed by concerned agency.

Theconcerned agency would ensure that goods are of Indian origin as per general principles governing rules of origin before granting Non Preferential Certificate of Origin.The Certificate would be issued as per format given in Annexure II to Appendix 4C to the Hand Book of Procedures. It should be ensured that no correction/re-type is made on the Certificate.

In case of tea, exporters who are required to submit Certificate of Origin (Non Preferential) are to apply to Tea Board or any Inspection Agency authorized by Tea Board and enlisted in Appendix 4C of Hand Book of Procedures vol.I along with documents listed above.

PROCEDURE FOR ISSUE OF CERTIFICATE OF ORIGIN
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For obtaining Certificate of Origin on regular basis, exporters are required to furnish a Permanent Indemnity Bond on a stamp paper of Rs.50/- duly attested as per format given below :

"The Director General

Federation of Indian Export Organisations

New Delhi.

Dear Sir,

In consideration of the Federation of Indian Export Organisations, New Delhi and its Regional Offices from time to time, giving or Authenticating Certificate of Origin, legalizing Invoices and other documents in respect of goods for exportation by

(Name and Address of Shippers)

We hereby certify that all particulars contained in Invoices or other documents presented to the Federation by us in our name for their certification or authentication or legalisation shall be true and accurately set forth, and further that we shall at all times, INDEMNIFY and keep indemnified the Federation and its officials against all claims and demands that may at any time be made against them or any of them by reason of issuing or authentication or legalisation of such certificates, invoices and other documents as aforesaid.

Yours faithfully,

(Signature & Rubber Stamp of the Shippers)

Place:

Dated:

Witness:1. ______________

2. ______________